Macquarie to Inject £245 Million More Into UK’s Southern Water

(Bloomberg) — Macquarie Asset Management has committed to putting more equity capital worth £245 million ($330 million) into Southern Water Ltd. as part of a plan to strengthen the U.K. utility’s finances.

Macquarie, which has a majority stake in the consortium that controls Southern, has previously said it would pour more money into the company, a minimum of £245 million. The new injection is added to the £655 million the firm raised earlier this year to shore up its balance sheet and maintain its credit rating.

Macquarie also reconfirmed that it would “provide additional equity commitments of up to £300 million” in the first half of 2026, according to a statement from Southern Water.

Britain’s water industry is in crisis, with a combination of structural and financial problems causing chronic leaks and sewer leaks, rising bills and a widespread loss of public confidence. This increases the risks of investing in the sector, which urgently needs funds to improve crumbling infrastructure.

The latest equity commitment is the final piece of a deal that has been in the making between Macquarie, Southern and its creditors for almost a year. The utility had to shore up its capital to avoid another downgrade that would cause it to violate conditions attached to its operating license.

In the summer, creditors filed a lawsuit against Ares Management Corp. and Westbourne Capital agreed to write off a significant portion of Southern’s holding company-level debt in exchange for a minority stake. Debt holders at the middle company level between the operating and holding companies agreed to extend the maturities until at least September 2030.

Following the agreement being implemented over the past few months, Southern was able to tap into the capital markets by selling £675 million worth of new bonds in November.

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